Berks County Current Home Owners

$6500 Tax Credit for Home Owners:

• Provides 10% of the purchase price up to $6500.
• Is a tax credit as opposed to a tax write off.
• Can be applied to 2009 or 2010 taxes.
• Has income limits of $125,000 for one owner and $250,000 for multiple owners.
• There is partial payment for income up to $145,000 for an individual and $245,000 for a couple.
• Total purchase price must be under $800,000.
• Persons eligible must have owned and lived in a home as a principle residence for 5 consecutive years of the last 8.
• Agreement of sale must be signed by both parties by April 30, 2010 and must settle by June 30, 2010.
• This tax credit goes into effect for any person having a settlement on or after the day the President signed the bill which is November 6, 2009.

A new attribute of both of the tax credits is that any veteran who has been deployed outside of the United States for 90 days or more between January 1, 2009 and June 30, 2010 has an automatic one year extension.  For either program the purchase must be made prior to April 30, 2011 and settled by June 30, 2011.